Institutional investors are showcasing a surprising resilience as holders of Bitcoin, defying expectations from market critics, according to insights shared by Matt Hougan, Chief Investment Officer of Bitwise. He highlighted that recent Exchange-Traded Fund (ETF) flow data points to a significant retention of positions by professional investors even amidst a harsh downturn in the cryptocurrency market.
Hougan stated, “The best evidence we have is in the ETF market,” emphasizing that Bitcoin ETFs have recorded approximately $60 billion in net inflows from their inception in January 2024 through October 2025. Despite a subsequent price drop of about 50%, the outflows from these ETFs have remained below $10 billion. This indicates that, in an environment characterized by a steep bear market, institutional investors have demonstrated a remarkable commitment to Bitcoin, earning them the characterization of having “diamond hands.”
The performance of ETFs like Bitwise’s Bitcoin ETF (BITB), which manages just under $3 billion in assets, and the leading BlackRock iShares Bitcoin Trust (IBIT), boasting over $55 billion in assets under management, further underscores this trend.
Critics often argue that institutional investors are more likely to liquidate their cryptocurrency holdings during periods of market stress and economic uncertainty. However, Hougan countered this perspective, suggesting that the current behavior of these investors defies this narrative. According to him, Bitcoin still represents a “non-consensus asset,” implying that those who choose to invest in Bitcoin are making significant career risks based on their strong conviction in its future prospects. “These investors are not merely 51% convinced that Bitcoin is a good idea; they are more like 80% or 90% convinced,” he asserted.
This high level of conviction among institutions is crucial, as it may enable institutional capital to remain resilient and “very sticky” throughout market fluctuations. With over $15 billion in client assets under management, Bitwise’s approach highlights this growing trend among institutional players.
In discussing the future potential of Bitcoin, Hougan emphasized the endurance of institutional investment behavior, stating it reinforces his long-term outlook of Bitcoin reaching $1 million. He expressed that achieving this price point is not as far-fetched as some might think, suggesting that all it requires is the continuing growth of the global store of value market over the next decade, alongside Bitcoin capturing a modest share of that market.
Hougan concluded by noting that the resilience exhibited by institutional investors through varying market cycles is indicative of a broader maturation process for Bitcoin, alluding to the potential for sustainable growth in the coming years if current trends persist.
